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3. DISCUSSION
3.1 Streamlining Approvals and Incentivizing Higher Density Development
3.1.1 SENATE BILL (“SB”) 423 – LAND USE: STREAMLINED HOUSING APPROVALS:
MULTIFAMILY HOUSING DEVELOPMENTS.
SB 423 extends and expands the application of SB 35. For context, SB 35 was passed in 2017
and created a streamlined, ministerial approval process for qualifying multifamily and mixed-
use affordable housing projects in localities that had failed to make sufficient progress toward
their Regional Housing Needs Assessment (“RHNA”) goals. Qualifying projects must agree to
provide a certain percentage of the units as deed restricted affordable housing (e.g., a
minimum of 10 percent of the units as affordable to lower income households). Qualifying
projects are only subject to ministerial review for compliance with objective standards and thus
are exempt from discretionary entitlements and CEQA.
SB 423 extends the operation of SB 35 until Jan. 1, 2036, and expands upon its applicability, in
the following ways:
• Beginning in 2025, SB 423 expands the application of SB 35 to portions of the coastal
zone subject to certain exceptions. For instance, SB 35 would still not apply in areas of
the coastal zone that are (1) closest to the beach (e.g., within the coastal appeals
zone), (2) vulnerable to five feet of sea level rise as determined by certain agencies or
the local government’s coastal hazards vulnerability assessment, (3) located within 100
feet of a wetland or on prime agricultural land, (4) not zoned for multi-family housing,
or (5) not subject to a certified local coastal plan or land use plan.
• Similarly, the bill amends existing law to apply SB 35 in specified hazard zones and
some high fire severity zones and State Responsibility Areas, as defined in the bill,
provided that the project complies with certain building and state fire mitigation
measures.
• The bill prohibits a local government from requiring, prior to approval of a qualifying
development, compliance with any standards necessary to receive a “postentitlement
permit” (e.g., building permits) or other studies that do not pertain to compliance with
objective planning standards.
• Finally, the bill amends the required labor standards for mixed-income projects. While
SB 35 required the use of “skilled and trained” labor for all but 100% affordable
projects, SB 423 instead sets up a three-tiered regime for projects that include market-
rate units: projects with fewer than 10 units have no additional labor provisions;
projects between 10 and 50 units must pay prevailing wage; and projects with greater
than 50 units must employ apprentices and provide health care for workers.
3.1.2 ASSEMBLY BILL (“AB”) 1490 – AFFORDABLE HOUSING DEVELOPMENT
PROJECTS; ADAPTIVE REUSE.
AB 1490, which applies in the coastal zone, makes the adaptive reuse of existing buildings into
100 percent affordable housing units an allowable use, even if such a use conflicted with any
local plans, zoning ordinances, or regulations. To qualify, an affordable housing project must
consist of all lower income households, and at least half of the units are dedicated to very-low